Bitcoin price recovers $31.5K, but traders say ‘scam’ price action will bring more downside


Bitcoin’s (BTC) short-term worth motion has been dominated by whipsaws that set off across the $31,000 to $32,000 stage and the June 6 reversal at this level triggered a fast sell-off that pushed the value all the way down to $29,200.

Surprisingly, on June 7, the value quickly reversed course as Bitcoin rallied again to $31,500, however given the present rejection at this stage, merchants are prone to proceed cautiously, somewhat than count on a fast surge to $35,000.

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BTC/USDT 1-day chart. Supply: TradingView

Right here’s what a number of analysts are saying concerning the short-term outlook for BTC and what help ranges to regulate transferring ahead.

A transparent redistribution vary

The range-bound buying and selling presently impacting Bitcoin was addressed by crypto analyst and pseudonymous Twitter consumer il Capo of Crypto, who posted the next chart highlighting the “clear vary” that BTC has been caught in for almost a month.

BTC/USD 4-hour chart. Supply: Twitter

The analyst mentioned,

“What is going on contained in the vary and what has occurred on the vary excessive, reveals that that is [a] clear redistribution vary. Clear break of the vary low = final leg down confirmed = 21K–23K.”

Ongoing flip-flop worth motion

A barely completely different end result to the present market chop was advised by crypto dealer and pseudonymous Twitter consumer Phoenix, who posted the next chart lamenting the month-long range-bound buying and selling for BTC and hinted that it’s going to see extra of the identical.

BTC/USD 2-hour chart. Supply: Twitter

Phoenix mentioned,

“On our means in the direction of an entire month inside a mini-range once more to completely deploy the flip-flop-your-bias-non-stop-angry-pleb-and-gtfo. *Ppl fomoed the highest, lows taken once more after the nuke, up we go once more?*”

Associated: Coinbase balance drops by 30K BTC as Bitcoin price nurses 6% losses

A attainable flush out to $20K

For merchants attempting to get some sense of where the bottom might be, market analyst and pseudonymous Twitter consumer Rekt Capital posted the next chart highlighting the 200-EMA (exponential transferring common) as a key indicator to look at.

BTC/USD 1-week chart. Supply: Twitter

In accordance with Rekt Capital, the value historical past for Bitcoin reveals that whereas it “tends to substantiate uptrends when it breaks above the blue 50-week EMA,” on the flip aspect it “tends to substantiate most monetary alternative when it reaches and breaks down from the black 200-week EMA.”

A better take a look at the latest worth motion round these indicators was supplied within the following chart posted by Rekt Capital to offer a greater image of what help stage to look out for.

BTC/USD 1-week chart. Supply: Twitter

Rekt Capital mentioned,

“This space is ~confluent with the orange #BTC 200-week MA. In reality, $BTC would wish to draw back wick under the 200MA to succeed in the ~$20K space. Apparently, draw back wicking tends to happen under the 200MA to mark out generational bottoms.”

The general cryptocurrency market cap now stands at $1.24 trillion and Bitcoin’s dominance fee is 46.4%.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer includes threat, it’s best to conduct your individual analysis when making a call.